(NewsNation) — The U.S. economy grew at a faster rate in the first quarter than previously estimated, according to government data released Thursday.
The economy grew at a 1.3% annual rate from January to March — an upgrade from the previous 1.1% estimate.
Even with the adjustment, the first quarter of 2023 marks the weakest GDP growth since the second quarter of 2022 when the economy shrank. From October to December, the economy grew at a 2.6% rate.
The Commerce Department’s revised estimate Thursday primarily reflects an upward revision to private inventory investment.
Consumer spending remained strong and grew at 3.8% — up slightly from the initial 3.7% estimate.
US adds a solid 253,000 jobs despite Fed’s rate hikes
Inflation has improved in recent months but remains higher than the Fed’s 2% target. Prices were up 4.9% in April compared to a year earlier — down from a 9.1% rate in June.
Despite the Fed’s rate hikes, the U.S. labor market has been resilient. America’s employers added 253,000 jobs in April and the unemployment rate fell to 3.4%, matching a 54-year low.
Average hourly wages rose by 0.5% from March to April, nearly twice what economists had expected.
The revised estimate Thursday comes as lawmakers on Capitol Hill continue to spar over the debt ceiling. If the debt ceiling isn’t raised in time, the nation would default on its debt. That could happen as soon as early June and it’s a scenario that could ignite a global economic crisis.
This is a developing story that will continue to be updated.
